ATLANTA, May 20, 2025 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $39.9 billion for the first quarter of fiscal 2025, an increase of 9.4% from the first quarter of fiscal 2024. Comparable sales for the first quarter of fiscal 2025 decreased 0.3%, and comparable sales in the U.S. increased 0.2%. For the first quarter of fiscal 2025, foreign exchange rates negatively impacted total company comparable sales by approximately 70 basis points. Net earnin ...

Core Viewpoint - Home Depot is set to release its first-quarter earnings results, with expectations of a slight decline in earnings per share but an increase in revenue compared to the previous year [1]. Financial Performance - Analysts predict Home Depot will report earnings of $3.59 per share, down from $3.63 per share in the same quarter last year [1]. - The company is expected to report quarterly revenue of $39.14 billion, an increase from $36.42 billion a year earlier [1]. Analyst Ratings - Home Depot has exceeded revenue estimates in two consecutive quarters and six out of the last ten quarters [2]. - Recent analyst ratings include: - Wells Fargo maintains an Overweight rating, lowering the price target from $445 to $420 [8]. - Truist Securities maintains a Buy rating, raising the price target from $391 to $393 [8]. - JP Morgan maintains an Overweight rating, reducing the price target from $470 to $410 [8]. - Morgan Stanley maintains an Overweight rating, cutting the price target from $450 to $410 [8]. - Piper Sandler maintains an Overweight rating, lowering the price target from $435 to $418 [8].

Core Viewpoint - Home Depot's comparable sales are expected to slow, reflecting concerns over tariffs and declining consumer sentiment impacting the housing market [1][2] Sales Performance - Analysts predict a softening in Home Depot's comparable sales, indicating potential challenges ahead [1] - Lowe's same-store sales are also forecasted to dip, and Floor & Decor has cut its full-year sales forecast [3] Tariff Impact - Tariff policies under President Trump are causing chaos in various industries, potentially increasing housing product costs and curbing consumer spending [2] - Home products are identified as highly exposed to tariffs, with demand and pricing closely linked due to their discretionary nature [3] Economic Sentiment - Over 50% of respondents in goods-producing sectors anticipate negative impacts from tariffs, reflecting growing concerns over supply chain disruptions and rising raw material costs [4] - The ongoing uncertainty is leading businesses to delay investments and hiring plans until trade policy clarity is achieved [5] Economic Performance - The U.S. economy contracted by 0.3% in the first quarter of 2025, marking the first decline since 2022, highlighting the tangible effects of trade tensions [5]

Core Viewpoint - Lowe's Companies, Inc. is set to report its first-quarter fiscal 2025 earnings on May 21, with investors keenly watching for performance against market expectations [1] Financial Performance Expectations - The Zacks Consensus Estimate for revenues in the upcoming quarter is $20.95 billion, indicating a 2% decline from the previous year [2] - The consensus estimate for earnings per share is $2.89, reflecting a 5.6% decrease compared to the same quarter last year [2] - Lowe's has a trailing four-quarter earnings surprise average of 3.9%, with the last quarter's earnings exceeding the Zacks Consensus Estimate by 5.5% [3] Market Challenges - The DIY home improvement segment is facing challenges due to soft discretionary spending, particularly for large interior projects, as consumers are cautious amid economic uncertainty [3] - The housing market remains subdued, with high mortgage rates and affordability issues negatively impacting home sales and renovation demand, especially among new homeowners [4] Strategic Initiatives - Lowe's is actively addressing changing consumer behaviors and market dynamics, with the Pro segment identified as a key growth driver [5] - The company is implementing a multi-year strategy to enhance product offerings, fulfillment options, and the shopping experience for professional customers [5] - Investments in the Total Home strategy, including supply chain modernization and improved merchandising, are positioning Lowe's to better navigate current challenges [5] Omnichannel and Technology Enhancements - Lowe's focus on omnichannel improvements and productivity enhancements is aiding cost control and expanding customer reach [6] - The relaunch of the MyLowe's Pro Rewards program aims to strengthen customer loyalty and encourage repeat business [6] - The use of advanced technologies, such as AI-driven demand planning and augmented reality tools, is helping align inventory and services with customer needs [6] Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for Lowe's, as it holds a Zacks Rank of 3 and an Earnings ESP of -0.43% [7][8]

Core Viewpoint - The current economic turmoil in the U.S. presents investment opportunities, echoing Warren Buffett's advice from 2008 to invest in American companies, as highlighted by Jamie Dimon, CEO of JPMorgan Chase [2][3][5]. Company Summaries 1. Tractor Supply - Tractor Supply operates over 2,300 locations in the U.S. and is recognized as the largest rural lifestyle retailer in the country [7]. - The company has experienced minimal growth, with only 15 net new stores opened in Q1 2025 and a projected net sales growth of 4% to 8% for the year [8]. - Operating margins are under pressure, expected to be just under 10% for 2025, down from over 10% in previous years, with potential further declines due to tariffs [9]. - Despite challenges, Tractor Supply has a loyal customer base and has consistently paid and raised dividends for 16 consecutive years [10]. 2. Floor & Decor - Floor & Decor operates around 250 locations in the U.S. and sources 18% of its products from China, which poses challenges [11]. - The company anticipates modest revenue growth for 2025 and expects EPS to decline to $2, down from 2023 results [12]. - Floor & Decor is strategically opening 20 to 25 new stores annually until reaching 500 locations, positioning itself for future profit growth as the housing market rebounds [14][21]. 3. Texas Roadhouse - Texas Roadhouse has nearly 800 restaurants in the U.S., making it a quintessential American stock [15]. - The restaurant chain recorded almost 10% year-over-year revenue growth in Q1 2025, despite a pullback in profit margins [16]. - Management is investing in technology upgrades to improve long-term profit margins, and the brand remains popular among consumers [17][19]. Investment Recommendations - Tractor Supply and Texas Roadhouse are suitable for investors seeking low volatility and consistent business results [20]. - Floor & Decor is recommended for those looking for better growth potential, especially with the anticipated recovery in the housing market [20][21].

Lowe's Companies ( LOW ) is the second-largest home improvement retailer in the U.S., with 1,748 stores (as of January 31, 2025). Those investing during the pandemic surely remember how it was one of the winners of that troublesome period. Others may recall thatI focus on long term growth and dividend growth investing. I follow both the US and the European stock markets, looking for undervalued stock and/or for high quality dividend growing companies that provide me with cash to reinvest. Over time, I have ...

Core Insights - Lowe's is expected to report quarterly earnings of $2.89 per share, a decline of 5.6% year-over-year, with revenues forecasted at $20.95 billion, reflecting a 2% decrease compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised down by 0.2% in the last 30 days, indicating a reassessment by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Key Metrics - Analysts estimate a total of 1,750 stores for Lowe's, slightly up from 1,746 in the same quarter last year [5] - The estimated total sales floor square footage is projected to be 195.19 million, compared to 195 million reported in the same quarter of the previous year [5] - The average store size selling square feet is expected to remain at 112 thousand, unchanged from the previous year [6] Stock Performance - Lowe's shares have returned +6.1% over the past month, while the Zacks S&P 500 composite has seen a +9.8% change, indicating that Lowe's is expected to perform in line with the overall market [6]

Group 1 - Home Depot is expected to report fiscal first-quarter earnings on May 20, 2025, with anticipated earnings of $3.59 per share and revenue of $39.16 billion, indicating a 1% decline in earnings year-over-year and an 8% increase in sales compared to the previous year [1] - The company's current market capitalization stands at $370 billion, with $160 billion in revenue, $22 billion in operating profit, and a net income of $15 billion over the last twelve months [2] - Historical data shows that Home Depot's stock has fallen 55% of the time after earnings announcements, with a median drop of 2.5% in one day and a maximum decline of 9% observed [1][2] Group 2 - Home Depot's business model is challenged by its reliance on global sourcing, particularly from China, Canada, and Mexico, which exposes it to trade interruptions and tariffs [2] - The company has recorded 20 earnings data points over the last five years, with 9 positive and 11 negative one-day returns, resulting in positive returns occurring roughly 45% of the time [5] - The median of the 9 positive returns is 1.7%, while the median of the 11 negative returns is -2.5% [5] Group 3 - For event-driven traders, historical patterns can provide an advantage, allowing for preparation ahead of earnings or response to post-release movements [2] - A less risky approach involves examining the correlation between short-term and medium-term returns after earnings, identifying pairs with the highest correlation for trading strategies [3] - The performance of peers may influence Home Depot's post-earnings reaction, with pricing potentially beginning prior to the earnings announcement [6]

Group 1 - The report titled "2025 Sixth Home New National Goods Brand Index (HNBI)" serves as a development barometer for the home goods industry, highlighting the transition of domestic brands from "followers" to "leaders" [1] - The report employs a combination of quantitative and qualitative analysis methods, utilizing big data mining, consumer surveys, and expert interviews to conduct extensive research on the national home goods market [1] - A "Six Forces Radar Model" has been constructed to evaluate leading companies in the home goods sector based on brand growth, technological innovation, design creativity, online influence, consumer satisfaction, and corporate social responsibility [1] Group 2 - The market for home building materials in China is projected to exceed 5 trillion yuan by 2025, with secondary renovations accounting for over 70% of the overall renovation market [2] - The new middle-class demographic is expected to surpass 600 million, with their consumption decisions reflecting a threefold upgrade in quality, experience, and cultural recognition [2] - The digital transformation of the industry is accelerating, with over 60% penetration of Industry 4.0 technologies among large enterprises, and flexible production and C2M models likely becoming industry standards [2] Group 3 - Consumer demand is shifting from functional consumption to quality and emotional consumption, with 82.9% of consumers trusting new national goods brands and 94.1% recognizing their innovation capabilities [3] - The Z generation is becoming the main consumer force, seeking emotional expression and personalized reconstruction in home spaces, prompting brands to shift from price competition to value competition [3] - Short video and e-commerce platforms are emerging as key channels for consumer recognition, reflecting a trend towards omnichannel integration in home goods consumption [3] Group 4 - Over 90% of consumers believe that new national goods brands can meet their needs, with a strong preference for domestic brands despite the competitive presence of international brands in the high-end sector [4] - More than 40% of consumers have increased their spending on new national goods, with a repurchase rate of 98.1% and 92.9% acknowledging improvements in brand innovation and quality [4] - Leading brands such as Huawei, Casarte, Midea, and others have gained significant market recognition for their innovative product designs and marketing strategies, earning accolades such as "2025 Leading Brands of Home New National Goods" [4]

Core Insights - Home Depot is expected to report quarterly earnings of $3.59 per share, reflecting a year-over-year decline of 1.1% [1] - Revenue projections stand at $39.33 billion, indicating an 8% increase from the same quarter last year [1] - The consensus EPS estimate has been revised 0.4% higher in the last 30 days, showing analysts' reevaluation of their initial estimates [1] Earnings Estimates and Market Performance - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock [2] - Empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [2] Key Metrics Projections - Analysts predict the 'Number of stores - Retail' will reach 2,350, up from 2,337 a year ago [4] - The 'Number of customer transactions - Retail' is expected to be 390.80 million, compared to 386.8 million in the same quarter last year [4] - The 'Average ticket - Retail' is projected to be $91.74, an increase from $90.68 reported in the same quarter last year [5] Stock Performance - Over the past month, Home Depot shares have recorded a return of +7.8%, compared to the Zacks S&P 500 composite's +9% change [5] - Based on its Zacks Rank 3 (Hold), Home Depot is expected to perform in line with the overall market in the upcoming period [5]